For Sale By Owner
Pricing Your Home Correctly
For Sale By Owner and Pricing Your Home Correctly.
In an effort to save money some people try to sell their home on their own. This is referred to as “For Sale By Owner” or in the industry FSBO. In order to sell your home it is important to know what other similar type homes are selling for. These homes are your “competition”, in any type of sales it is good to know what your competition is. Let’s say your home is a 3 bedroom, 2 bathroom, 2 car garage, 2000 square feet built in 2006. There is another very similar house in your neighborhood that is listed for $200,000. You would like to sell your house for $250,000; which home will sell first? We can help you establish a price by looking at what your competition is. Give us a call and we will be happy to assist you at no cost.
Appraisal Hurdles
Most buyers are going to need to get financing to purchase a home. All lenders will require an appraisal by an independent appraiser. If the home does not appraise for the agreed sales price, the buyer will need to come up with extra money or the seller will need to drop their price. In most cases neither buyer nor seller have any extra money to make the deal happen. When selling a home on your own, it is a good idea to have the buyer submit a pre qualification letter along with their offer. If the potential purchase is hinged on the buyer obtaining financing, this can be a very important step.
Use An Attorney
Another suggestion to help with the sell of your home is the use of a qualified attorney to help with the paperwork. Since this may be the largest transaction in your lifetime, an attorney can assist with the details of the sale to make sure you don’t lose more money than you are saving on your FSBO. If an attorney is used prior to closing the deal, the legal expense will be greatly reduced, rather than hiring one to come in after the deal and try to correct any mistakes. Some attorneys routinely help with real estate, and have a set rate for reviewing the transaction. It will definitely cost less to pay up front than to hire an attorney to begin a law suit. Many attorneys will ask for a $10,000 retainer to open a lawsuit. This makes the paperwork review cost of $1,000 or even less seem insignificant.
What Goes? What Stays?
A issue that should also be considered when selling a home are the items that will be left and taken by the seller when they leave. A good example are the drapes, light fixtures, refrigerator, stove, landscaping items, etc. etc. There have been no shortage of law suits regarding items taken or left behind in a real estate transactions. Yes, left behind; items like old cars, non working refrigerators, tires, 55 gallon barrels filled with who knows what? Some times items left behind can cost more to get rid of than items taken without permission. It is much better to address these issues prior to closing than trying handle them after the sale.
